ECB is paying attention to the weakness in the economic data
Euro is still feeling the heat
De-escalation in the geopolitics continues
Naysayers were proved wrong and they had it in their face
Investors wanted to have the Europen Central Bank’s support and they had that yesterday. Draghi assured that the ECB is paying attention to the weakness in the economic data and its QE program is in no rush no leave the town and it is still fully committed to its mission. This pushed the European markets higher yesterday and a strong close over on Wall Street backed by some stellar number from Amazon and Intel made investors to push their risk on limits further.
European equity markets are on course to end the week strong, and this is despite the fact that the weak GDP q/q reading from France and a feeble German import number released today. I think investors got what they needed from the ECB and bad news is good news again.
Of course, Euro is still feeling the heat, thanks to the dovish comments from Mario Draghi, European Central Bank president and the softness in the French consumer economic data isn’t helping the overall picture either. The weakness in the Euro pushed the euro/dollar pair below the 1.21 mark for the first time since January this year. We have broken out of a big consolidation area (range from is mainly 1.2555-1.2155). This has been the range since 12th January this year. There is no doubt that we are way oversold and the dollar index itself isn’t strong either so the probability is that we may see a corrective move soon before the long-term trend prevails.
Gold
De-escalation in the geopolitics continues as South and North Korean leaders met for the first time. North Korea has dramatically softened his stance towards his nuclear arms race and it is something purely because of the Trump tactics. President Trump must be appreciated for this, although it is a very different story if something else is going on behind the closing doors. Under those circumstances, we would see the risk off rally skyrocketing because it will have a major impact on investor sentiment.
The shining metal, for the time being, is trading in a range where the top side is capped by the resistance of 1366 and the support is at 1302. We need to break out of this ugly consolidation zone so a new trend could emerge and that would attract many traders who use technical analysis for their trading strategies.
Amazon No Longer Relying on Delivery Boy
In terms of earnings, investors have been fretting that the tech sector’s growth is under threat due to the recent change in policies. But, the collective message from the tech giants was that we are not okay, but we are striving. Naysayers were proved wrong and they had it in their face. The recent drop in the Amazon’s price after the president Trump’s tweet (which created the jittery among Amazon investors) turned out to be an opportunity not to be missed.
Amazon proved in its earning’s result that the company is no longer an online selling platform only but it has positioned itself which can take a lead in the changing Fintech space. The company’s cloud-computing division has become the crown jewel and its revenue surpassed more than its selling things online. Amazon’s answer was simple, it is not relying on “delivery boy”
